US Treasury Secretary Scott Bessent on Thursday warned Iran of what he described as the "toughest sanctions in history". He said Washington would pursue coordinated economic isolation against Tehran and seek to "collapse this regime". His remarks were reported by Al Jazeera.

Speaking to CNBC, Bessent explained that the measures would limit Iran’s ability to act through proxy groups. He warned that countries continuing to do business with Tehran could face US action. He emphasised that "maximum economic pressure means likely not a kinetic restart", suggesting that the US was unlikely to resume military action against Iran.

Bessent added that a media conference scheduled for Monday would reveal "exactly what we're going to do" against Iran. On the subject of China’s trade ties with Tehran, he urged Beijing to "get with the program" and support efforts to reopen the Strait of Hormuz. He noted that China receives around 50 per cent of its energy from inside the Gulf, arguing that it would be in Beijing’s interest to cooperate.

When asked if Washington could target China for continuing business with Iran, Bessent said some discussions were better held privately. However, he added that the US was confident that all parties wanted the Strait reopened and energy prices reduced.

His comments followed President Donald Trump’s announcement of the "most crushing economic operation ever taken" against Iran. Trump warned countries providing financial, business or government support to Tehran of "tremendous economic consequences". He declared that "no one has given the Islamic Republic of Iran a greater opportunity to make a Deal than me. Tragically, for them, they have failed to take it."

Trump announced that the measures would target Iran’s economic lifelines, including oil smuggling networks, financial transfers, exchange houses, ship registries and front companies. He said, "Oil smuggling, swap lines, cash transfers, exchange houses, ship registries, front companies – it all needs to stop NOW."

He urged US allies to join Washington in isolating Tehran, claiming that the measures would weaken Iran’s ability to project influence globally. He described the campaign as an "Economic D-Day" and called for allied support to isolate and defeat the Iranian threat.

Trump also reiterated that Iran would never be allowed to acquire nuclear weapons, stating emphatically, "Iran will never have a nuclear weapon."

The developments come amid heightened tensions between Washington and Tehran over the Strait of Hormuz, a critical global energy transit route. Trump had earlier claimed that the Strait remained open and that the US naval blockade had been "100 per cent successful". He said that oil shipments were continuing despite tensions.

Iranian Foreign Minister Seyed Abbas Araghchi criticised Trump’s announcement, describing it as an attempt to divert attention from America’s economic challenges. In a post on X, he said, "The so-called 'Economic D-Day' is a diversion from America's own crisis: unprecedented debt and surging interest costs."

He added that doubling down on failed policies would only bring further defeat and enmity from Iranians, accusing Washington of economic terrorism that threatened the global economy and sovereignty worldwide.

Iranian Parliament Speaker Mohammad Bagher Ghalibaf had earlier declared that Tehran would not reopen the Strait of Hormuz until the United States fulfilled commitments under a 14-point Memorandum of Understanding. These commitments included lifting the blockade, releasing frozen Iranian assets and easing oil sanctions.

ANI